By Tony Obiechina, Abuja
The first Electric Power Roundtable organised by the Abuja Chamber of Commerce and Industry (ACCI) was held in the nation’s capital on Monday.
According to the Moderator of the Roundtable, Mr Olawale Rasheed, the primary aim of the conference “is to bring together electric power policy makers, regulators, suppliers operators, activists and end users to take stock of the state, structures and impacts of power sector reforms”
The conference with the theme, “Considating Privatisation of Power Sector: Issues And Challenges”, also discussed discussed possible strategies and solutions to identify challenges impending realization of privatisation goals and targets.
In his opening remarks, the President of ACCI, Dr Al-Mujtaba Abubakar said the discussion is a continuation of its efforts to provide private sector perspectives on critical national policy issues adding that “Our strategy is to create platform for exchanges of policy ideas to deepen policy sector formulation and implementation process”
He said, “from January to date, we had directed our spotlight on major sectors of the economy with actionable proposals to relevant government agencies and public policy leaders. Our policy advocacy efforts had touched on railways, mining, diary, port operations, SMEs, national budget, energy sector among others.
“We are today set to address the state of the power sector with a focus on consolidation of the outcome of the privatization exercise. Our gathering here is significant as we are all in agreement that outstanding issues preventing the effective delivery of power to business and the citizens deserve urgent action.
“We note quite straightforwardly that market forces and principles should be allowed to operate within the sector. The sector cannot perform efficiently and sustainably if market rules are not allowed to function. This is even more germane now that global governments are suffering from dwindling revenue.
“All indices confirm that government cannot sustain continuous intervention in the sector. We believe efficient regulatory actions will go a long way to ensure all stakeholders play their part across the value chain. A situation where regulators are reluctant to enforce established regulations can create distortions within the system.
“We also believe more private sector involvement especially in the transmission sector will help to strengthen the system. The current model of a public entity sandwiched within private operators is a major issue deserving of government action.
“There is no doubt that the nation needs to fully extend privatization across the sub- sectors to reap the benefit of private sector driven power sector. Furthermore, we note with pleasure the current efforts of the National Assembly to review the enabling law governing the power sector. Whether an omnibus Bill or sectoral one, the National Assembly holds the key to drive the sector to the expected level of sustainability.
“We therefore hope to fully participate at the public hearing on the Electricity bills before the two chambers of the National Assembly”.
Dr Abubakar who commended all operators of the power sector for keeping the system functioning despite all challenges, also acknowledged the success stories such as the successful management of the Assets and Liability of the defunct NEPA by NELMCO, and survival under difficult conditions of the generation and distribution sectors under the GENCOS and DISCOS.
He called on the federal government to consolidate on the privatization exercise with a view to addressing the problems and hiccups within the system, adding that “his must however be done with strict attention to the protection of private investment in the nation’s power sector”.
He further stated that as Nigeria intensifies drive for more investment across the sector, “we have a duty to demonstrate our readiness to protect existing investors as a marketing strategy for wider Foreign Direct Investment. We seek solutions from stakeholders here present”.
Speaking on “Nigerian Power Sector Reform: Implementation, Challenges and Way Forward”, President, Nigerian Institution of Power Engineer, Engr Israel Abraham, noted that in its efforts to improve the power supply situation in the country, the government opted for the reforms and eventual privatisation of the sector to attract private sector finance, technical and admirative expertise.
He however, regretted that government and citizens’ expectations have not been fully realised fifteen years after the exercise.
He pointed out that, “Reform, as we all know, is a process that has implementation stages, and for any reform to be successful, these stages must be followed through faithfully. Generally Speaking, reforms have five stages of implementation as follows”.
The stages according to him, include, Government Commitment stressing that “This is the stage where govt commits to the reform agenda by enacting the law that would give legal support to the process and establishing the institution that would drive the process. Unfortunately, government commitment was inconsistent”.
Other notable speakers at the Round table were from the BPE, NNPC TCN, REA, NAPTIN, NBET, NBS as well as the ACCI.
